Effects of an Energy Tax (Carbon Tax) on Energy Saving and Emission Reduction in Guangdong Province-Based on a CGE Model

Wei Chen, Jin-Feng Zhou, Shi-Yu Li and Yao-Chu Li
Additional contact information
Wei Chen: School of Environmental Science and Engineering, Sun Yat-Sen University, Guangzhou 510275, China
Jin-Feng Zhou: School of Environmental Science and Engineering, Sun Yat-Sen University, Guangzhou 510275, China
Shi-Yu Li: School of Environmental Science and Engineering, Sun Yat-Sen University, Guangzhou 510275, China
Yao-Chu Li: School of Environmental Science and Engineering, Sun Yat-Sen University, Guangzhou 510275, China

Sustainability, 2017, vol. 9, issue 5, 1-24

Abstract: Guangdong, as China’s most affluent province, which is representative in terms of its industrial and energy consumption structure, will deal with an important issue about how to change its environmental management policies from command-and-control strategies to incentive-based ones and how to exert its effects to the greatest extent possible in the new situation of the impending imposition of an environmental tax. By establishing an energy Computable General Equilibrium (CGE) model for Guangdong Province, and setting up various taxation and tax refund scenarios, this research simulates the energy saving and emission reduction effects imposed by the imposition of an energy tax or carbon tax at various tax rates in Guangdong Province, and analyzes the mitigation effects upon an economic system by various tax refund plans. The research proves that when the energy tax rate is at 100–200 yuan/tce (ton coal equivalent) or carbon tax at 50–100 yuan/t CO 2 , the energy consumption of Guangdong Province is reduced by 5.8–11.21%, and carbon emission is reduced by 5.94–11.61%. The energy saving and emission reduction effects of the carbon tax surpasses that of the energy tax under the equivalent tax revenue with even fewer significant negative impacts upon the economy, contributing to the capital transfer towards non-energy intensive industries; thus, appropriate and accurate tax refund plans can alleviate the negative impacts of taxation upon the economy in Guangdong Province.

Keywords: energy tax; carbon tax; CGE model; energy saving and emission reduction; Guangdong Province (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://www.mdpi.com/2071-1050/9/5/681/pdf (application/pdf)
https://www.mdpi.com/2071-1050/9/5/681/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:5:p:681-:d:96751

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().